Spotify is an online audio streaming service founded in Sweden in 2006 that has over 60 million songs and 1.5 million podcasts available. It launched in 2008 and now has over 180 million monthly active users, including over 100 million premium subscribers. Spotify generates revenue through a freemium model and had revenues of over €2 billion in 2020. While it faces competition from other music streaming services like Apple Music and YouTube Music, its continued growth will depend on increasing its music catalog and keeping its user interface clean and easy to use.

1. Rob Zofchak (rzofchak)

2. Problem
● Purchasing music gets expensive
● Hard to discover new music
● Persona: Indie music lovers

3. Product
An online audio streaming
service with over 60 million
songs and over 1.5 million
podcasts.

4. Product (cont.)

5. Spotify Revenue by Quarter (in millions of euros)

6. Spotify Monthly Average Users (MAU) vs Subscribers
(in millions of users)

7. Stock

8. Freemium Service

10. Company History
2006 20102008 201820142012 2016 2020
Founded in Sweden
by Daniel Ek and
Martin Lorentzon
Officially launched:
October 2008
U.S. Launch and Free
accounts offered: July 2011
1 million active
users: March 2011
Android app
released
IPO Launch: April 2018
100 million
total users
Numerous Acquisitions
(Soundtrap, Loudr, Joe Rogan,
etc.)
Tencent
partnership

11. Leadership
Daniel Ek: Founder, CEO Martin Lorentzon:
Co-Founder, Director
Paul Vogel: CFO

12. What’s HOT
● The music!
○ 60 million songs at your fingertips
○ Radios, Playlists, Podcasts

13. Secret Sauce
● Discoverability
● Social Aspect
● Clean UI

14. Competition
Free Option
Offline
Listening
Mobile &
Desktop
Mobile Only Mobile Only Mobile Only
Mobile &
Desktop
Mobile Only Mobile Only
Radio
Podcasts
High-bitrate
music (Premium) (Costs Extra) (Costs Extra)
Social
Aspect
Pandora
Apple Music YouTube Music

15. Prediction
● Continued Success IF:
○ Continued increase in user-friendliness
○ Music availability increases
● Chances likely but with this amount of competition, who knows?

16. Sources
https://newsroom.spotify.com/company-info/
https://www.thelocal.se/20180302/the-story-of-spotify-swedens-controversial-king-of-music-streaming
https://medium.com/open-product-management/analysis-on-spotify-and-its-potential-partnerships-46b7cfd72197
https://www.statista.com/statistics/813828/spotify-revenue-quarterly/
https://markets.businessinsider.com/stocks/spot-stock?op=1
https://seekingalpha.com/article/4379422-sounds-like-spotify-is-in-trouble
https://www.mirror.co.uk/tech/history-spotify-how-swedish-streaming-12291542
https://www.cnet.com/how-to/best-music-streaming-service-for-2020-spotify-apple-amazon-and-youtube-music/
https://investors.spotify.com/financials/default.aspx

17. Questions?